Final answer:
Profit maximization focuses on maximizing short-term profits, while wealth maximization focuses on maximizing long-term value. Financial management involves planning, organizing, and controlling a company's financial resources to achieve its goals.
Step-by-step explanation:
The difference between profit maximization and wealth maximization lies in their focus and goals. Profit maximization focuses on increasing short-term profits, while wealth maximization focuses on maximizing the long-term value of the business and its shareholders. Profit maximization seeks to increase revenue and reduce costs to maximize immediate profits, while wealth maximization looks at factors such as investments, profitability, and risk management to maximize the overall value of the business.
Financial management is the process of planning, organizing, controlling, and monitoring a company's financial resources to achieve its goals and objectives. It involves making financial decisions regarding investments, financing, and risk management.
Important aspects of financial management include budgeting, financial analysis, financial forecasting, and capital budgeting. Financial management ensures that the company has the necessary financial resources to operate effectively and efficiently.